Key takeaways
National home prices rose 0.4% in June, marking a new record high. Prices are now 4.6% higher than a year ago.
Capital city markets drove the gains, with prices up 0.4% month-on-month. Adelaide posted the strongest monthly rise (+0.6%), extending its streak of outperformance and retaining its title as the strongest performing capital city over the past year (+9.8%).
Sydney (+0.5%), and Hobart (+0.5%) also recorded solid rises in June, while Brisbane and Perth recorded strong annual growth, up 8.3% and 7.8% respectively. The median house price in Brisbane has now risen above $1,000,000.
Melbourne prices rose 0.3%, continuing the city’s recovery. However, values remain 1.1% below their peak.
Prices in regional areas climbed 0.3% in June, with annual growth of 6.0% outpacing the combined capitals (+4.1%).
While growth in the regions has been slower than the rebound across the capitals in 2025, regional markets remain resilient, supported by affordability and lifestyle appeal.
Regional prices are now up just above 65% over the past five years.
National home prices rose 0.4% in June, pushing values to a record high, according to the latest PropTrack Home Price Index.
As interest rates have fallen, price momentum has strengthened and extended across the country, with all markets recording gains in June.
Ms Eleanor Creagh, Senior Economist at PropTrack commented:
"Capital city markets are leading the upturn, with price growth in all cities in June, following outperformance by Adelaide, Brisbane and Perth in 2024.
Market momentum is building amid renewed buyer confidence and improved sentiment, buoyed by falling interest rates and expectations of another rate cut in July.
However, the upturn remains measured as affordability constraints keep the pace of growth in check."
Source: PropTrack Home Price Index. 1 July 2025
Ms Eleanor Creagh, further explained:
"Further interest rate cuts expected later this year will ease borrowing costs, adding to the momentum in housing demand and reinforcing recent price growth.
In addition, population growth and limited new supply are also placing upward pressure on prices, especially at the more affordable end of the market.
With interest rates moving lower, these factors are likely to sustain price growth over the second half of 2025.
Despite these tailwinds, the upturn remains gradual and stretched affordability will see a more measured upswing than in previous easing cycles."
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House and unit prices lift in June
Nationally, house and unit prices lifted 0.4% in June , according to PropTrack.
Ms Creagh said:
"National house prices have lifted 4.6% over the past year, a rise equating to almost $50,000.
Growth in unit values (4.4%) has been comparable through the same period, with annual growth of $30,400."
Outlook
Ms Creagh explains that further interest rate cuts expected later this year will continue to ease borrowing costs, adding to the momentum in housing demand and reinforcing recent price growth.
She further said:
"Despite these tailwinds, the upturn remains gradual and stretched affordability continues to limit the depth of the upswing.
Population growth, limited new supply, and expectations of further rate relief are keeping upward pressure on prices, especially at the more affordable end of the market.
With interest rates moving lower, these factors are likely to sustain continued price growth over the second half of 2025.
However, activity is likely to remain skewed toward markets and segments where buyers can still find value.
Despite these tailwinds, the upturn remains gradual and stretched affordability will see a more measured upswing than in previous easing cycles."
